Plastics pricing: Around the world, LDPE prices are all over the map

07/18/2011

Using the two graphs with this article, processors of plastic packaging film can compare the price they pay to those paid by processors across the globe. The first graph illustrates pricing development this year for LDPE film grade material in four countries plus Southeast Asia. Upon seeing it the immediate response is, "Pity those poor extruders in Italy!"

According to the chart, courtesy of plastics pricing service ChemOrbis, film extruders in Italy have been paying a healthy premium compared to those in Southeast Asia plus Turkey, Egypt and China, the other three countries for which the chart tracks LDPE film grade pricing. A second observation is that Chinese processors have had and still maintain a solid advantage on their principal cost versus their competitors elsewhere.

According to ChemOrbis, the price divergence between Italy and the other countries was due this year to limited availability for LDPE film grade material in Europe. The high €/$ currency exchange rate also contributed to the premium. Though Italy's (and Western Europe's) LDPE market still maintains its premium over other markets, the price gap has been narrowing since the end of May....Read more www.k-online.de

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